Professional Documents
Culture Documents
Snyder
Chapter 7
Location: 500 W. 12th Street, 2nd Floor
Vancouver, Washington
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In re
Mark A. Leonard, 10
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Plaintiff,
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Mark A. Leonard, an individual,
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Defendant.
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For its Complaint against defendant Mark A. Leonard (Leonard), the
Federal Deposit Insurance Corporation, as Receiver for Cowlitz Bank (FDIC) alleges:
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1.
The court has jurisdiction over this adversary proceeding pursuant to Fed. R. 21
Bankr.
2.
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U.S.C. 523 and 727 and are core proceedings pursuant to 28 U.S.C. 157(b)(2)(H) and 24
(b)(2)(J).
Page 1 of 14 COMPLAINT TO DETERMINE THE NONBLACK HELTERLINE LLP
805 SW Broadway, Ste. 1900
DISCHARGEABILITY OF DEBT AND TO OBJECT TO DISCHARGE
Portland, OR 97205
798467
Case 14-04062-PBS Doc 1 Filed 02/20/14 Ent. 02/20/14 18:12:03 Pg. 1 o(5f031) 4224-5560
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was appointed as receiver of Cowlitz Bank on July 20, 2010, after the institution failed and
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the bankruptcy matter pending in the United States Bankruptcy Court District of Washington,
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under certain Commercial Guaranties on June 7, 2010 in Cowlitz County Superior Court, 12
Case No. 09-2-02188-1.
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7.
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of 1989 (FIRREA), the FDIC succeeded to all rights, titles, powers and privileges of
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As of June 7, 2013, the date Leonard filed the Individual Bankruptcy, the
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outstanding balance owed to the FDIC on account of the judgment was $938,670.44, as is
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evidenced by the Proof of Claim on record in Case No. 13-43836-PBS as Claim No.1.
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9.
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Agreement, and Commercial Security Agreements entered into by Cowlitz Bank and Tytan
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International, Inc. (Tytan Intl) on April 10, 2006, subject to subsequent Modifications and
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Extension Agreements.
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10.
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At all relevant times, Leonard has acted as the President of Tytan Intl, which
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Statements, the FDIC has a perfected security interest that extends to all Tytan Intls
records and proceeds related thereto, whether owned at the time of the grant of the security
interest or acquired thereafter, in addition to other items specifically set forth in the
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Tytan Intl filed Chapter 7 bankruptcy in the United States Bankruptcy Court
Bankruptcy).
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13.
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Tytan Intl and declared under penalty of perjury that the information contained in the
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petition, schedules and related statement of financial affairs was true and correct.
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Holdings). Tytan Holdings is denominated as a penny stock and is in listed on the Over
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The Counter (OTC) Bulletin Board under the symbol TYTN PK.
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15.
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January 2013, Tytan Holdings acts as the holding company for Tytan Intl, its wholly owned
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subsidiary that generates revenue through the sale of tractors and tractor implements.
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At the time Tytan Holdings acquired Tytan Intl in or around December 2009,
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of his majority ownership (500,000 of the 1,000,000 shares) of the Preferred Series A stock.
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At all relevant times, Leonard has served as Chief Executive Officer and
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At all relevant times, Tytan Intl and Tytan Holdings have been headquartered
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Reports and Consolidated Financial Statements for 2009, 2010, 2011 and 2012. (Denies)
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statement that Tytan Intl and/or Tytan Holdings has assets of 1.8 million dollars in inventory
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Consolidated Financial Statement and certified that such disclosures did not contain any
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untrue statement of material fact or omit to state any material fact. (Denies)
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23.
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exchanges under Rule 504 of Regulation D, as promulgated under the Securities Act of 1933
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(504 Exchanges) in which Tytan Holdings sold approximately 600,000,000 shares of its
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Common Stock to E-Lionheart and Associates, LLC, Fairhills Capital and TJ Management,
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LLC. (NEI)
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by Leonard as Chief Executive Officer of Tytan Holdings, the funds raised in the 504
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Exchanges were to be used for the purpose of enabling Tytan Holdings to develop and
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under the pretense of having obtained the unanimous written consent of Tytan Holdings
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E-Lionheart and Associates, LLC and Fairhills Capital have since been sued by the U.S. Securities and
Exchange Commission in the U.S. District Court for the Southern District of New York for violating the
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the Individual and Tytan Bankruptcies, as well as a subsequent 2004 Examination conducted
on December 20, 2013, Tytan Holdings received only $400,000 from the 504 Exchanges.
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27.
According to Leonards sworn testimony at the same 341(a) hearings and the
2004 Examination, the capital generated from the 504 Exchanges was exclusively used to
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filed by Tytan Holdings, it raised over $900,000 from the 504 Exchanges and the funds used
to purchase new inventory, increasing Tytan Holdings and/or Tytan Intls assets by 27.9%, 10
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FDIC, approximately $725,000 from the 504 Exchanges was deposited directly into Tytan
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Holding and Tytan Intl bank accounts in 2011. According to the same bank statements,
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30.
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FDIC, a large portion of the funds generated from the 504 Exchanges was subsequently
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31.
According to Leonards sworn testimony at the 341(a) hearings and the 2004
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Examination, Tytan Intl stopped operating business on or around November 7, 2013, the
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32.
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2004 Examination, all remaining assets of Tytan Intl subject to the FDICs security interest
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are properly accounted for on the schedules in the Tytan Bankruptcy and are currently stored
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January 4, 2014, which shows a value of only $157,100. Of that value, approximately
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Leonard has failed to sufficiently account for the discrepancy in the amount of
inventory listed on the schedules in the Tytan Bankruptcy and the Annual Report and
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Despite giving sworn testimony to the contrary, Leonard has in fact concealed
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equipment from China under the name of the Truper Corporation (Truper Corp.), an entity
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owned and operated by Leonard, with specific instructions that deliveries be made to
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Examination, the Truper Corp. has no bank accounts, no assets and does not conduct
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business. (NEI)
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parties that the Truper Corp actively acts as an agent and importer for tractor dealers,
including Tytan Intl and Southwest Tractors. 23
.(Denies) . . . . .
......
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40.
Holdings and Tytan Intl with his own affairs and has treated corporate assets as his own,
including without limitation his personal consumption of funds from the 504 Exchanges. (Denies)
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Tytan Holdings, has failed to maintain adequate corporate minutes or records for Tytan
Holdings or Tytan Intl and has disregarded required corporate formalities. (Denies)
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At all relevant times, Leonard has further failed to adequately disclose and
testified falsely as to the current state of assets, liabilities and related business affairs in both
the Individual and Tytan Bankruptcies, including without limitation, his ownership of a
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significant antique firearms, financial transactions involving his two daughters, Heather S.
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Jaeger and Holly A. King, and an alleged security interest granted to China National United
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FDIC in May 10, 2011, in connection with an attempt to settle litigation in Cowlitz County
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Superior Court involving Tytan Intl (Case No. 10-2-01361-1) collection of the judgment on
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financial condition which were materially false when made. The Affidavit also includes as
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exhibits the 2009 and 2010 Consolidated Financial Statements for Tytan Holdings which
further contain materially false information. 22
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Page 7 of 14 COMPLAINT TO DETERMINE THE NONBLACK HELTERLINE LLP
805 SW Broadway, Ste. 1900
DISCHARGEABILITY OF DEBT AND TO OBJECT TO DISCHARGE
Portland, OR 97205
798467
Case 14-04062-PBS Doc 1 Filed 02/20/14 Ent. 02/20/14 18:12:03 Pg. 7 o(5f031) 4224-5560
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45.
(Alter Ego)
The FDIC incorporates the allegations and assertions of fact in paragraphs 1
At all relevant times, Leonard has dominated and controlled Tytan Holdings
corporate funds for other than corporate purposes and has abused the protections provided by
the corporate form. (Denies)
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The corporate entities and Leonard are one and the same so that Leonards
conduct relating to the business operations of Tytan Holdings and/or Tytan Intl, including
without limitation the disposition of corporate assets, should be considered one and the same. (15
(Denies)
CLAIMS FOR RELIEF RELATED TO OBJECTION TO DISCHARGE
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SECOND CLAIM FOR RELIEF
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11 U.S.C. 523(a)(2)(A)
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behalf of Tytan Intl, he sought credit, renewals, refinancing and forbearance from both
Cowlitz Bank and the FDIC. 24
(Denies)
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conduct when he entered into the Commercial Guaranties and subsequent negotiations with
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had every intent to deceive Cowlitz Bank and later, the FDIC (Denies)
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Cowlitz Bank and the FDIC justifiably relied on Leonards representations.
(NEI)
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The FDIC has suffered damage as the proximate result of its and Cowlitz
course of its dealings with Leonard and Tytan Intl were materially false at the time such
documents were made. (Denies)
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The Affidavit Leonard submitted to the FDIC on May 9, 2011 was materially
Leonard knew the statements were false at the time he executed the related
statements. 24
......
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Cowlitz Bank and the FDIC reasonably relied on the financial statements and
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The FDIC has suffered damage as the proximate result of its and Cowlitz
Affidavit.
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Leonard caused the financial statements and Affidavit to be made with the
11 U.S.C. 523(a)(6)
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Leonard has disposed and concealed the FDICs Collateral with the specific
knowledge that the disposition would invariably and indubitably cause harm to the FDIC.
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Leonard has acted willfully and maliciously with the intent to improperly use
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the FDICs Collateral and/or its proceeds for purposes other than payment of the debt secured
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by the Collateral.
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had the specific and deliberate intention of causing harm to the FDIC.
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68.
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11 U.S.C. 727(a)(2)(A)
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Within one year before the date of the filing of the petition in the Individual
Bankruptcy, Leonard, in his capacity as the alter ego of Tytan Holdings and Tytan Intl, has
with the intent to hinder, delay, or defraud the FDIC transferred, removed, destroyed,
mutilated, or concealed or has permitted to be transferred, removed, destroyed, mutilated or
concealed, property of Tytan Intl subject to the FDICs security interest
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72.
Within the year prior to filing the Individual Bankruptcy, Leonard has with
the intent to hinder, delay, or defraud his creditors transferred, removed, destroyed,
mutilated, or concealed or has permitted to be transferred removed, destroyed, mutilated or
concealed his property.
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11 U.S.C. 727(a)(2)(B)
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73.
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Since the filing of the Individual Bankruptcy, Leonard, in his capacity as the
alter ego of Tytan Holdings and Tytan Intl, has with the intent to hinder, delay or defraud
the FDIC transferred, removed, destroyed or concealed or has permitted to be transferred,
removed, destroyed or concealed, property of the bankruptcy estate of Tytan Intl.
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Since the filing of the Individual Bankruptcy, Leonard has with the intent to
hinder, delay or defraud his creditors transferred, removed, destroyed, or concealed or has
11 U.S.C. 727(a)(3)
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Leonard, both in his individual capacity and in the capacity as the alter ego of
Tytan Holdings and Tytan Intl, has concealed, destroyed, mutilated, falsified and failed to
keep and preserve recorded information, including books, documents, records, and papers,
from which to ascertain his, Tytan Intls and Tytan Holdings financial condition and
business transactions without justification.
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11 U.S.C. 727(a)(4)
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(False Oath)
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Individual Bankruptcy and Tytan Bankruptcy, made false oaths and accounts, including
without limitation his failure to disclose assets and liabilities on bankruptcy schedules signed
under penalty of perjury and false sworn testimony the 341 (a) hearings and 2004
Examination.
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The oaths were made with the specific purpose of perpetrating a fraud.
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11 U.S.C. 727(a)(5)
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behalf of Tytan Intl and Tytan Holdings, there existed $1.8 million in inventory and
$230,242 of accounts receivable at the end of 2011, both subject to the FDICs security
interest.
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Leonard, in the capacity as the alter ego of Tytan Holdings and Tytan Intl,
has failed to explain satisfactorily the loss and deficiency of the FDICs Collateral.
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86.
(Attorneys Fees)
Agreements and Commercial Guaranties provide for the recovery of attorneys fees in any
enforcement activity or collection, including bankruptcy proceedings.
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The FDIC has incurred and continues to incur attorneys fees and costs with
respect to the enforcement of terms and provision set forth in the Promissory Note, Business
Loan Agreement, Commercial Security Agreements and Commercial Guaranties.
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Judgment declaring that the claims made by the FDIC against Leonard are
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attorneys fees, costs of litigation and all court costs to the extent allowed by law;
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E.
circumstances.
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